Be it enacted by the Legislature of the State of Yap.

Section 1.

Section 2 of Yap State Law No. 11-148 is hereby amended to read as follows:

“Section 2. Conditions and Restrictions.

(1) Funds herein appropriated under the 3rd Amended Compact sector grants shall not be available for obligation for their planned uses by the respective agencies unless the planned uses are unconditionally approved by the Joint Economic Management Committee (JEMCO) under the Amended Compact through issued grant awards and until the respective grant cash amounts have been drawn-down by the State and are deposited in the respective State accounts and available for disbursement. Any amount not unconditionally approved by JEMCO shall be deemed not appropriated herein.

(3) Lump-sum budget amounts shall not be advanced to any agency at the beginning of the fiscal year. Memorandum of agreement (MOA) or other forms of agreement the purpose of which is to obligate and disburse to a respective agency its annual budget as approved herein, including reimbursements to such agencies for payments for expenditures under their respective budget, is prohibited. All funds appropriated by this Act shall be maintained under the authority of the Director of the Office of Administrative Services.

( 4) Funds herein appropriated shall be allotted only on a quarterly basis, except where it is essential for the effective and efficient performance of the duties and responsibilities of an agency to allot certain lump-sum amounts at the beginning of the fiscal year such as for the purchase of fixed assets and for contractual services.

(5) Funds appropriated herein for personnel shall not be reprogrammed for other uses; EXCEPT for the following:
(a) Department of Health Services is authorized to reprogram $135,000 for other health needs.”

Section 2.

This Act shall take effect upon the approval by the Governor, or upon its becoming law without such approval.